Liverpool owners pledge funds for Dalglish
Chairman Tom Werner said freshening up the squad is the priority and insisted Dalglish, put in charge after Roy Hodgson's sacking, is the man to steer the club away from the lower reaches of the Premier League.
"I would be devastated if we didn't see some improvement," Werner told BBC Sport. "We've identified some targets and hope we will be successful.
"I expect progress, we've resources to improve, we're not driven by spending, but our team needs to get younger."
Liverpool, who travel to Wolverhampton Wanderers on Saturday, are just four points above the relegation zone and despite the euphoria over Dalglish's return to the hotseat they have failed to win any of the Scot's three matches in charge.
Werner can see signs of progress, however.
"We feel very confident we're making progress," he said. "There's not an overnight success, our squad has been inconsistent and we expect to improve it short term.
"Kenny's got many of the qualities we've looked for in a manager, he has the confidence of the players and we'll start to see better results.
"Kenny has proven so far so great. We're pleased."
Werner, who along with fellow American John Henry bought the club in October, said he did have some sympathy for Hodgson.
"We felt we needed to change," he said. "We handled it with dignity, I think quite highly of him and we all take some responsibility for what has been an inconsistent season.
"In a perfect world we wouldn't have had to make the change but we're in a results business."